Fashion director runs up ban over £98k tax owing

The director of a women’s clothing manufacturer has been banned as a company director for six years after failing to pay a £98,000 tax bill

Surinder Singh was the director of Lady Fashion (UK) Ltd. Trading from premises in Leicester, the company was incorporated in September 2017 and manufactured women’s clothing.

It was placed into compulsory liquidation in July 2019 after ceasing trading and failing to pay a £98,000 tax bill which had accumulated from April 2018.

A subsequent Insolvency Service investigation found Singh had failed to ensure Lady Fashion kept accounting records.

The director had also withdrawn £180,000 in cash from the company accounts between November 2017 and March 2019 and could not explain the reasons for the withdrawals to the Official Receiver.

Singh did not dispute that he failed to ensure Lady Fashion maintained and/or preserved adequate accounting records and that the company traded to the detriment of the tax authorities, and has been banned from acting as a company director for a period of six years.

Robert Clarke, chief investigator at the Insolvency Service, said: ‘Surinder Singh tried to cloak his actions through a lack of records and attempted to gain an unfair competitive advantage by not paying the tax due.

‘Directors have a clear obligation to make sure they maintain full and accurate records for their business, and we will take robust action against those who fail to maintain these required standards, as this case shows.’

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

View profile and articles

Average: 5 (1 vote)

Rate this article

Related Articles